Supreme Court Rules On Striking Out Fraudulent Claims

Aside from the rule in insurance law under which an insured cannot recover in respect of any part of a claim in a case where the claim has been fraudulently exaggerated or where a genuine claim has been supported by dishonest devices, the general rule of law is that a person cannot be deprived of a judgment for damages to which he is otherwise entitled on the ground of abuse of process.  The Supreme Court has, however, made a decision contrary to this principle, citing that the court has power under the CPR and under its inherent jurisdiction to strike out a statement of case at any stage of the proceedings, provided that it is "just and proportionate" to do so. 

Background

The claimant, Mr Summers, was accidentally injured whilst working for the defendant, Fairclough Homes Limited.  Mr Summers claimed damages of £838,000 from his employer.  In 2010 the claim was found by Manchester County Court to be grossly exaggerated; £88,716 was awarded for the genuine